At a talk at USC, the pair agreed that it’s on track to have a “massive implosion”. At the core of their argument: there just isn’t enough time in the day for consumers to support all the films released in theaters. Films are competing with all the content and options that the Internet provides.

They suggest the marketplace will contract because there isn’t enough time in the week for us to go to the movies anymore. With Netflix producing top quality content, and video games cutting into weekends, it leaves little room for date night out at the cineplex. It’s getting so bad that Lucas complains about how hard it is even for him to get a film in a theater. This should probably make producers of films nervous.

The duo says that the studios will be forced to reevaluate how to distribute films. Perhaps a film like Lincoln will cost less to see than, say Iron Man? Or perhaps, we don’t even get movies like Lincoln in theaters anymore. They will come straight to our homes.

For over a decade, the films that can’t find an audience in the theater have found their niche on the internet where they can be marketed and sold on iTunes to those who will love them. Companies like Netflix and Hulu are able to focus on these niches and program specifically for them, for much cheaper than the $300 million it cost to release a summer film. That translates to these Internet companies being able to take bigger risks on content, similar to HBO’s model. And technology winning.